81R4324 ACP-D By: Lucio S.B. No. 2287 A BILL TO BE ENTITLED AN ACT relating to the creation of the small municipality and rural area housing development fund. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter I, Chapter 487, Government Code, is amended by adding Sections 487.355 and 487.356 to read as follows: Sec. 487.355. SMALL MUNICIPALITY AND RURAL AREA HOUSING DEVELOPMENT FUND. (a) In this section, "colonia" means a geographic area that: (1) is located in a county or municipality that is eligible, as identified by office rule, to receive financial assistance from the community development block grant colonia fund under this subchapter; (2) consists of 11 or more dwellings that are located in close proximity to each other in an area that may be described as a community or neighborhood; and (3) either: (A) has a majority population composed of individuals and families of low income, based on the federal Office of Management and Budget poverty index, and meets the qualifications of an economically distressed area under Section 17.921, Water Code; or (B) has the physical and economic characteristics of a colonia, as determined by the department. (b) The small municipality and rural area housing development fund is an account in the general revenue fund. (c) In each state fiscal year, the office shall set aside for the purposes of this section an amount of money, not to exceed $7.5 million each year, that is equal to any amount provided to the community development block grant colonia fund under this subchapter that exceeds the amount provided to that colonia fund for the state fiscal year ending August 31, 2008. (d) Except as provided by Subsection (e), amounts deposited to the account may be appropriated to the office only for: (1) housing initiatives in eligible counties and municipalities under office rules; or (2) the improvement of the housing conditions in a colonia. (e) Amounts deposited to the account may not be appropriated to the office for financial assistance to political subdivisions for the construction, acquisition, or improvement of water supply and sewer services, as described by Section 17.922, Water Code. (f) Sections 403.095 and 404.071 do not apply to the account. Sec. 487.356. COORDINATION WITH TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS. The office shall work with the Texas Department of Housing and Community Affairs to identify available sources of funding for housing initiatives in a county or municipality that is eligible, as identified by office rule, to receive financial assistance from the community development block grant colonia fund under this subchapter. SECTION 2. Subchapter E, Chapter 2306, Government Code, is amended by adding Section 2306.098 to read as follows: Sec. 2306.098. COORDINATION WITH OFFICE OF RURAL COMMUNITY AFFAIRS. The department shall work with the Office of Rural Community Affairs to identify available sources of funding for housing initiatives in eligible counties and municipalities, as described by Section 487.356. SECTION 3. This Act takes effect September 1, 2009.